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URUGUAY has been a proud exception to the privatizing wave that swept through South America in the 1990s. Its state-owned firms are more efficient than many of their counterparts in Argentina and Brazil ever were. In 1992, Uruguayans voted in a referendum against privatizing telecoms. They rightly observe that some of Argentina's sales were botched, creating inefficient private monopolies. And with unemployment at 15%, nobody is enthusiastic about the job cuts privatization would involve.
The polls that show continuing support for public ownership also show growing opposition to monopolies. So Mr. Batlle plans to keep the state firms, but let private ones either compete with them or bid to operate their services under contract.
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